Wednesday, March 24, 2021

The Market Starts to Heat Up | February Real Estate Update

 



It was a bit unclear in January where the market was headed.  Now with February's numbers completed, I see that the market is much more active.

Hoboken

The absorption rate increased 7.79% to 18.54 weeks, which is still firmly in seller's market territory.  It's important to note that the rate is down 7.21% from last year at the same time. Typically 24-32 weeks is considered a balanced market and over 32 weeks is considered a buyer's market.

Inventory is lingering a bit longer again this month, but pending sales are up 18.71% from last month and 18.71% as well from February 2020.  

Totals sales are down 19.40% but we are still seeing some closings that were under contract at the end of last year when that market was a bit softer.  We will start seeing total sales increase for next month.


1 BR pricing saw a 1.13% decrease which is just a normal market fluctuation.  We are still seeing first time homebuyers entering the market. 2BR and 3BR markets each saw price increases of over 8.41% and 5.08% respectively as move up buyers start to feel more comfortable with the prospects of living in Hoboken post-COVID.

Downtown Jersey City

The absorption rate increased 10.96% to 19.54 weeks and is still on par with Hoboken.  We don't usually see this and it is a good sign of increased activity in the area.

Pending sales increased 4.97% to 190 units. Pending sales are up an impressive 57.02%.  

There were 53 total transactions, down 5.36% from last month, but up 43.24% from February 2020.

1BR units saw a 5.16% decrease, but we still saw many renters become first time homebuyers in downtown Jersey City as well.

2BR units decreased 2.73% while 3BR units jumped 29.82%, but as usual 3BR sales are only based on a few sales.

So based on the data here and a sneak peak I took for the March numbers, it seems that the market is starting to heat up again.  

Happy Hunting!




Kevin G. Dowd
Broker of Record

100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201.606.5957 | Office: 201.659.8600 

Search MLS Listings for free at ViewHobokenHomes.com and DowntownJerseyCityHomes.com

Get the latest real estate statistics at HobokenDowntownJerseyCityRealEstateBlog.com


Wednesday, February 24, 2021

January 2021 Real Estate Update | Hoboken/Downtown Jersey City

 



January is off to a very transitional start and the numbers don't tell the complete story.  

More on this later...

Hoboken

The absorption rate increased to 17.20 weeks, which is firmly in seller's market territory and is up 40.98% from last week and 58.09% from February 2020. Typically 24-32 weeks is considered a balanced market and over 32 weeks is considered a buyer's market.

Inventory is lingering a bit longer, but pending sales are up 13.25% from last month and up 29.55% from February 2020.  These pending sales when they close will work to bring the absorption rate back down a bit.

Totals sales are down 22.99% but these are sales that were under contract 45-60 days ago when the market was a but sluggish.  This ties in with an increase of 20.51% for days on the market for these sales.  Again tying in with the slowdown in the market that we experienced at the end of last year.

1 BR pricing saw a 5.08% increase which was mostly caused by renters becoming homebuyers, many for the first time. 2BR and 3BR markets each saw price declines of over 7% which is indicative of the softness in this market segment that we saw at the end of last year.

Downtown Jersey City

The absorption rate actually dropped 4.08% to 17.61 week and is on par with Hoboken.  We don't usually see this and is a good sign of increased activity.

Pending sales increased 11.73% to 181 units, again beating Hoboken. What's important to note is the pending sales are up 77.45% from this time last year.  Impressive.

Total transactions did lag behind Hoboken at 56 days vs. Hoboken's 47 days.

1BR units saw a 1.89% decrease, but we still saw many renters in this market turn into buyers.

2BR units increased 5.20% while 3BR units decreased 20.78%, but as usual it's only based on a few sales.

So although the market still seems to be in a bit of a transition, we're seeing a lot more activity in the marketplace.  Bidding wars are now coming back and showing activity has increased significantly.

Let's hope for a strong spring market.

Happy Hunting!






Kevin G. Dowd
Broker of Record

100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201.606.5957 | Office: 201.659.8600 x408


Search MLS Listings for free at ViewHobokenHomes.com and DowntownJerseyCityHomes.com

Follow the latest real estate news at  www.HobokenRealEstateNews.com

Get the latest real estate statistics at HobokenDowntownJerseyCityRealEstateBlog.com


Monday, January 25, 2021

2020 Year End Update | What A Year It's Been for Real Estate!

 




Well, what a year this has been!

I hope that this post finds you all healthy and safe.

From a real estate perspective, we were poised to have a great 2020 before the pandemic hit.

However, looking back at the numbers we did fairly well overall.

But the numbers don't tell the exact picture of what really happened in the marketplace.

More on that later...

Absorption Rate


Hoboken: 19.15 weeks, +13.34%
Downtown Jersey City: 27.75 weeks, +16.46%

As the market shut down for a few months, it was to be expected that inventory would linger on 
the market a bit longer.  I'm actually surprised at the rather small improvements that were seen in both markets.


Pending Sales 

Hoboken: 153.83, -.43%
Downtown Jersey City: 124.33, -4.36%

Again, there was an expectation that pending sales would plummet as the market came to a screeching halt.  Fortunately, that wasn't the case.


Days on Market

Hoboken: 41, +19.35%
Downtown Jersey City: 42 days, +7.90%

Modest increases here...same story.


Total Yearly Sales

Hoboken: 788, -5.40%
Downtown Jersey City: 536, -7.90%

With 2-3 months of no activity it's expected that overall sales slowed down. 


Hoboken - Price Per Square Foot


Studio: $523.97/sq.ft., -27.25%

1BR: $732.38/sq.ft., +1.75%

2BR: $712.44/sq.ft., +2.04%

3BR: $725.46/sq.ft., -3.36%

It's interesting that 1 and 2BR units eked out small increases, but not surprising at all that 3BR units dropped 3.36%.  Many families that would upgrade to 3BR units and then move to the suburbs decided to go right to the suburbs instead.  This is why the suburbs are in such high demand right now.  There are also many 3BR sellers wondering why they had to go over asking price in the suburbs and they are struggling to find one buyer for their 3BR home here.


Price Per Square Foot-Downtown Jersey City

1BR: $750.58/sq.ft., -2.16%

2BR: $724.22/sq. ft., -7.50%

3BR: $688.41/sq.ft., -4.52%

Following the downward sales trend, downtown Jersey City posted decreases in all market segments this year.  The story is identical to Hoboken, a slower market and 3BR buyers jumped over Jersey City to move to the suburbs.

The other issue that we experienced this year is that many buyers are not attached to being as close to the PATH train as in years past because they're not working in the city for the foreseeable future .  Properties that are farther back in town with outdoor space and parking sold very well this year.

As was the case last year. 2017/2018 price per square foot pricing is now our target to beat...which I know we will.  It's just matter of when it will happen.

Happy Hunting!

Kevin G. Dowd
Broker of Record

100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201.606.5957 | Office: 201.659.8600 x408


Search MLS Listings for free at viewhobokenhomes.com and alldowntownjerseycityhomes.com

Follow the latest real estate news at  www.HobokenRealEstateNews.com

Get the latest real estate statistics at HobokenDowntownJerseyCityRealEstateBlog.com


Monday, January 11, 2021

Great Signs of Market Improvement | December 2020 Real Estate Update

   




KEEP AN EYE OUT FOR MY END OF YEAR REAL ESTATE REPORT
COMING SOON!


December 2020 Real Estate Report


Hoboken

For the third month in a row inventory decreased in Hoboken to just 12.20 weeks.  This is always a good indicator of sales activity in the upcoming 30-60 days.

1, 2 and 3 BR units all saw price decreases over last month as the market still lagged a bit from the sluggish last few months.

Days on the market increased by 25.81% to 39 days for closed sales.



Downtown Jersey City

Available inventory decreased by 34.71% to 18.36 weeks as the market starts to heat up a bit.

The increase in activity is backed up by an increase in pending sales of 7.28% to 162 units.

With the pace of sales and pending sales increasing we may start moving back into seller's market territory.

Pricing increased 1.41% for 1BR units and dropped 5.13% for 2BR units.  2BR sales were down a whopping 23.43% when compared to this time past year.

3BR sales slipped 11.34%, but it was only based on a few sales which is why pricing for this segment is always so volatile.

Days on the market decreased 13.04% to 40 days.


Conclusion

I'm starting to see signs that the market is improving.  In both Hoboken and downtown Jersey City, we saw the pace of sales and pending sales increase. 

Days on the market increased, but that is reflecting sales that were under contract in the past 30-60 days. The increase in days on the market will continue to increase for next month or so as we shake off the sluggish last few months.






Kevin G. Dowd
Broker of Record
100 Washington Street
Hoboken, New Jersey 07030
Mobile: 201.606.5957 | Office: 201.659.8600

Search MLS Listings for free at ViewHobokenHomes.com and AllDowntownJerseyCityHomes.com